Based on the information below create the year end income statement, balance sheet, and cash flow statement.

On January 2, 2003, Alexander, together with a number of relatives and friends, established Chemalite, Inc.; 500,000 shares were issued, of which Alexander received 125,000 in exchange for his patent, and the remainder were sold to the other investors at $1 per share. During the period January 2, 2003, through June 30, 2003, Chemalite, Inc., made the following expenditures:

• January 15—Paid $7,500 in legal fees, charter costs, and printing expenses associated with the incorporation of the company.
• June 15—Spent $62,500 building the machinery that would be used to produce the first commercial models of the Chemalite.
• June 24—Purchased $75,000 worth of plastics and chemicals for use in the production of commercial Chemalites. ‘

Between January 2 and June 30, the company’s bank balance had fallen from $375,000 to $230,000.

During the last half of 2003, Chemalite, Inc., did indeed go into full operation. To prepare for the shareholders’ meeting in early January 2004, Bill Murray, the firm’s recently hired bookkeeper, produced the following data:

1. In early July 2003, a consulting engineer delivered the prototypes of the Chemalite that he had been developing, and he was paid a total of $23,750.
2. During the six months from July to December 2003, Chemalite sold $754,500 of its product. The largest single purchaser, the auto parts distributor with whom Peterson had negotiated, still owed Chemalite, Inc., $69,500. All other customers’ accounts were paid in full by year- end.
3. Additional chemicals and plastics were purchased for a total of $175,000. All of these purchases were paid for in cash.
4. Chemalite, Inc., spent $22,500 on television and trade journal advertising to introduce the product.
5. During the six months ended December 31, 2003, the company expended $350,000 on direct manufacturing labor and on manufacturing-related overhead (rent, utilities, supervisory labor). An additional $80,000 was spent on corporate salaries and other corporate expenses.
6. In early July, a further $150,000 was spent on machinery to be used in the production of Chemalites.
7. During the period, the company had borrowed $50,000 for a short time and repaid the loan by year-end. The interest paid on the loan amounted to $750.

In preparing his state-of-the-corporation report, Alexander noted with some anxiety that the company’s bank balance had fallen a further $117,000 from the $230,000 reported in June to only $113,000. It bothered him because he believed that the company was really doing quite well, and he failed to understand why the bank account did not appear to reflect this condition. In surveying the cash outflows incurred by Chemalite, Inc., over the entire year, he noted the following:

1. The machinery used in the production of the Chemalites was general purpose machinery, not restricted to Chemalite production, that might reasonably be expected to last for 10 years—six months of which had already passed.
2. There was still a stock at December 31 of $55,000 worth of plastics and chemicals in the warehouse; however, there were no finished or partially finished Chemalites at yearend.
3. Although the patent that the company had acquired from Alexander had a legal life of 20 years, he expected competitors to develop equivalent products that did not use the patented technique in about five years.
4. Alexander was quite confused by the worth of the prototypes. They had directly resulted in the development of the product the company was presently selling, so perhaps their value had actually increased over the last six months of 2003.
5. The committee organizing The Olympic Games, Athens 2004, had placed a firm order with the company for 60,000 Chemalites at a price of $1.50 each. It was their intention to give a Chemalite to each person at the opening ceremony of the 2004 Olympic Games and to have athletes and fans light their Chemalites, symbolic of the Olympic flame.

accounting question

The following information has been extracted from the financial records of Associate Ltd     at 1 April 2004 and at 31 March 2017.

Additional information provided:

(i) Investor Ltd acquired 20% the equity in Associate Ltd on 1 April 2004 for $350 000 cash.

(ii) Each financial year Investor Ltd has been paying Associate Ltd an office rental fee of   $26 000.

(iii) Investor Ltd records dividend income from Associate Ltd when it is declared by Associate Ltd.

(iv) During March 2016 Associate Ltd made an upward sale to Investor Ltd of $32 000 and recognised a profit of $10 560. This purchase of inventory remained in Investor Ltd’s inventory as at 31 March 2016.

.

(v) During March 2017 Associate Ltd made an upward sale to Investor Ltd of $40 000 and

recognised a profit of $13 200. Investor Ltd did not sell this purchase of inventory until

14 May 2017.

(vi) During March 2016 Investor Ltd made a downward sale to Associate Ltd of $8 000 and

recognised a profit of $2 400. This purchase remained in Associate Ltd’s inventory as at 31

March 2016.

(vii) During March 2017 Investor Ltd made a downward sale to Associate Ltd of $5 000 and

recognised a profit of $2 000. Associate Ltd sold this inventory before the 2017 financial year

end.

(viii) The tax rate is 28%.

Required:

(a) State the amount at which the asset Investment in Associate will be measured at in the

general ledger of Investor Ltd as at 31 March 2017.

(b) Prepare the notional journal entry, as at 31 March 2017, to account for the asset

Investment in Associate using the equity method as required by

NZ IAS 28 Investments in

Associates

. Show all workings in the notional journal entry.

Complete a ‘quick estimate’ in the

space provided.

(c) Determine the amount at which the asset Investment in Associate will be measured at,

after being equity accounted for, in the financial statements as at 31 March 2017. Show

workings.

After reading the following case, please answer the following questions:

1. Why does agency problem arise?

2. What is the cost of agency problem?

3. How to minimize the agency problem?

CASE STUDY ON AGENCY PROBLEM ABC

Company started operations in early 1970. The company produces specialized items for manufacturing cars. Most of the raw materials used are imported from Brazil because the cost is low and the labor is very cheap. The CEO for ABC Company, Mr. Rodriguez, makes every attempt to keep the cost at the lowest. From 1970 to 2000 net income has increased at a rate of at least 25% per year. There are around 20,000 shareholders that hold ABC Company shares. Shareholders are very happy with the company’s performance. Mr. Rodriguez always held a meeting with Board of Directors to inform them of any decision involve in the company. As such the BOD is very happy with the company performance and Mr. Rodriguez managing style. Every year, the staff received cash bonus of around 2 to 3 times of their salary and Mr. Rodriguez received many incentives from the company including cars, houses and cash. However, at the end of 2001, the cost of raw material increases because of the attack of SARS virus in Brazil. The sales for the year were also reduced. By September 2001, Mr. Rodriguez held an emergency meeting with all the staffs. It is estimated that the income for the year will be reduced. By January 2002, after the preparation of the financial statements, net income showed a decreased of around 45% from last year. Mr. Rodriguez demanded the treasures and the controller to do something with the figures. During the BOD meeting in April 2002, the company announced a 15%increase in the income and declared a dividend of around 5% higher than last year. The shareholders reacted positively to the announcement and started buying more shares of the company. For the next five years, the company continue to decrease in income but providing a good news to the shareholders and giving shareholders higher profit. In 2008, the BOD requested for the company to change the auditor for the company. After the auditing process, the new auditor revealed that the company is in the state of bankruptcy and there are zero balance cash in the bank account. One month after that the company was forced to closed down. Shareholder were surprised with the announcement and lost all their money. The employees lost their job and many creditors couldn’t claim their money. Shareholders are currently suing Mr. Rodriguez and the company for their losses.

The Tax Cut and Jobs Act, 2017

The changes made by the Tax Cut and Jobs Act, 2017 to the tax provisions have changed tax rate for 2018 and people are getting a first hand experience of what it means to them. Go over the Act and address the questions below:

1. What are the major changes made to the tax provisions by the Act?

2. What impact is it likely to have on our GDP and government’s budget?

For each of the following scenarios, use the goods market (investment-saving) diagram to identify changes in saving and investment curves. Provide a separate diagram with original and new curves for each scenario. Determine the changes in the interest rate and equilibrium quantities of investment and saving. a. An expected increase in households’ income. b. A rise in expected future marginal productivity of capital. c. An increase in current output (income).

Please make sure it is expected not current!

The value of outstanding bonds change whenever the going rate of interest changes. In general, short-term rates are more volatile than long-term rates. Therefore, short-term bond prices are more sensitive to interest rate changes than are long-term bond prices. Is this statement true or false? Make up a reasonable example using a short-term and a long-term bond to help answer the question.

Please discuss the following question in your own words 400 word on the following question.

Choose a real health care organization to study. Interview 1 key leader who is involved in the organization's health care delivery. Based on questions asked and answers given, the report will summarize the questions and answers and then present detailed information evaluating the following: proposed operational changes, and how these changes may impact operations and budgets.

2. Consider the following proposed changes to the current Social Security earnings test (i.e. from the one we discussed in class) and determine if the changes lead to higher hours of work among retirees. a. A change in the amount of exempt labor earnings from $17,000 to $25,000. b. The government would reduce benefits by 50 cents for every dollar earned above $25,000 rather than 33 cents as discussed in class.

Hi, please include a detailed answer for both parts of this question, thanks!

1 A) Identify the changes in TSH and TRH secretion that you would expect to see in a patient with hypothyroidism due to iodine deficiency. (1 mark-50-100 words)

1 B) Using your knowledge of thyroid hormone regulation, explain why you would see these changes in TSH and TRH secretion. (2 marks-150-200 words)